Category: Debt Advice

Talk Money Week 2023

Posted on by Craig Stocks
6-10 November 2023 marks a week known as Talk Money Week in the UK. It’s an annual event run by Money and Pensions Service and it usually falls on the second week of November of any year. It’s a time for debt charities and companies such as Trust Deed Scotland® to come together and encourage people to open up about their money and debt worries. Talk Money Week’s focus for 2023 is to encourage people to Do One Thing that could help improve their financial wellbeing, and encourage others to do the same thing. Their suggestions are to talk to a child about pocket money, use one of the free tools or calculators, or get financially educated. The Money and Pensions Service are funded by levies on both the financial services industry and pension schemes and their vision is “Everyone making the most of their money and pensions.” They are an ‘arm’s-length body’ sponsored by the Department for Work and Pensions, with a joint commitment to ensuring that people throughout the UK have guidance and access to the information they need to make effective financial decisions over their lifetime. They deliver those across five core functions. 1. Pension guidance. 2. Debt advice. 3. Money guidance. 4. Consumer protection. and 5. Strategy.  

Why does talking about money and debt matter?

One of the key focuses of Talk Money Week 2023 is to encourage conversations about unaffordable debt. By having a conversation, you can improve your physical, mental and financial wellbeing. Money and Pensions research shows that talking about money can help you to:
  • Make better and less risky financial decisions
  • Have stronger personal relationships
  • Help your children form good lifetime money habits
  • Feel less stressed or anxious and more in control.
Building money conversations into our everyday lives also helps us build financial confidence and resilience to face whatever the future throws at us and Talk Money Week’s intention is for you to kickstart a conversation in any walk of life, including:
  • In your workplace
  • At home with friends and family
  • In educational establishments, or with debt charities
  • With the people to who you owe money to
However, it isn’t easy talking about money and debt. Many people fear being judged, embarrassed or ashamed of their debt when the truth is problem debt can happen to anyone.

How long do people wait before getting help with their debt?

In a 2022 study of existing Trust Deed Scotland® & Harper McDermott customers.
  • 17% got help with their unaffordable debt straight away
  • 25% waited up to 1 year before asking for help
  • 30% waited between 1-2 years before asking for help
  • 14% waited between 3-4 years before asking for help
  • 14% waited over 4 years before asking for help with debt
57.4% waited over a year before finally asking for help with their unaffordable debt.

What type of debts worried our customers most?

Credit card debts are the most troublesome type of debt that our customers encounter.
  • 33.84% were worried about credit card debts in Scotland
  • 24.33% were concerned about a personal loan
  • 11.60% thought that their overdraft was a worrying debt
  • 7.20% were worried about council tax arrears debt
  • 6.68% are worried about payday loan debt
  • 4.04% are worried about a buy now pay later agreement
  • 3.31% were worried about their gas & electric bills*
  • 2.98% were worried about rent arrears debt
  • 2.95% were worried about HMRC debts
  • Lastly, 3.07% were worried about another type of unaffordable debt
*It’s important to stress that these answers were taken before the cost of living crisis really started to bite. If this same survey were to take place today, the results would be vastly different. For example, a survey from Smart Energy GB in October 2022 found that almost half of its respondents said they were worried about rising energy costs.

What impact did debt have on our customers’ mental health?

We asked our customers if their mental or physical health was impacted by their debt problem and overall 91.36% of our respondents’ mental health was impacted by their debt problem.
  • 57.61% – Yes – My mental health was affected
  • 1.33% – Yes – My physical health was affected
  • 33.75% – Yes – Both my mental and physical health were affected
  • 7.30% – No – My mental or physical health was not impacted by my debt problem
In the same survey, 84% of existing Trust Deed Scotland® & Harper McDermott customers said that their mental health had improved, with 30.39% of our customers also saying that their physical health improved also.

What do people who have previously started a conversation with Trust Deed Scotland® say about their experience?

At Trust Deed Scotland® we currently have over [reviews] reviews from our customers, with a rating of 5/5 rating on Trustpilot. In addition to this statistic, our survey shows that: 97.7% of our customers said they were satisfied or better with the Debt Arrangement Scheme as their chosen debt solution. 98.8% of our customers said they were satisfied or better with a Trust Deed as their chosen debt solution. Our survey asked all active customers for their feedback and also those who had recently been discharged from a debt solution. Our Trust Deed Scotland reviews are just as important to us, not only as a signal that our customers are happy with the service that they have received from us but also because they allow people with problem debt in Scotland to find other individuals who were once in the same position that they too find themselves in Some of those reviews are anonymised by our customers to protect their own identities. Many of the reviews go into great detail, and some contain just a few words. Either way, they are always written completely in our customers’ own words describing their experience in their reviews and we’re always grateful to receive them; both good and bad. We’re always keen to take action on any feedback that we receive to make improvements to our processes wherever we can and continuously improve our own learning and development as a leading Scottish debt solutions provider. Our experienced debt advisers received reviews in the run-up to Talk Money Week 2022 which perfectly described many of the feelings that individuals have when they’re looking for help with their unaffordable debt.
Reviewing one of our experienced debt advisers Soreena, Clang wrote: “The process was quick and Soreena was right on top of it all. I’m so happy my wage arrestment will be lifted and I can now get on top of my debt and finally relax and stop worrying. I’m so happy I made the choice to enter into a Trust Deed and the advice and help I received was just amazing.“
Jane, speaking about her experience with our debt adviser Barry, said “I have just recently started the process of setting up a DAS with Trust Deed Scotland and have had Barry as my point of contact from when I first submitted my enquiry. This has made the process a lot easier as your not having to explain things to someone new each time. Barry has been very good at explaining everything to me and answering any questions I’ve had. He always phones at a time that is convenient for me. I feel like for the first time in a long time I can breathe and can actually start to see past the debt.“
Another customer wrote about the beginning of his journey with Jacqui by saying: “My adviser Jacqui was an absolute pleasure to deal with, and put me at my ease throughout the whole process. She was so attentive, super helpful and such a friendly person. Nothing was too much trouble for her in helping me through the entire process from the start to completion. I would go so far as to say that Jacqui has not just met expectations, she has exceeded them by her friendly, efficient and helpful manner. It has made such a huge difference already. It feels as if there’s been a huge weight and burden lifted from my shoulders and I can finally start living my life again.“

Start a conversation about your unaffordable debt

Our experienced, friendly debt advisers offer tailored debt advice and explain the advantages and disadvantages of any formal debt solutions that you may be eligible for. You can contact Trust Deed Scotland® on 0141 221 0999 or use our Trust Deed Debt Calculator to find out more about your options.
Talk Money Week 2020 Talk Money Week 2021 Talk Money Week 2022 Talk Money Week 2023 Talk Money Week 2024

Talk Money Week 2021

Posted on by Craig Stocks
8-12 November 2021 marks a week known as Talk Money Week in the UK. It’s an annual event run by Money and Pensions Service and it usually falls on the second week of November on any year. It’s a time for debt charities and companies such as Trust Deed Scotland® to come together and encourage people to open up about their money and debt worries. The Money and Pensions Service are funded by levies on both the financial services industry and pension schemes and their vision is “Everyone making the most of their money and pensions.” They are an ‘arm’s-length body’ sponsored by the Department for Work and Pensions, with a joint commitment to ensuring that people throughout the UK have guidance and access to the information they need to make effective financial decisions over their lifetime. They deliver those across five core functions. 1. Pension guidance. 2. Debt advice. 3. Money guidance. 4. Consumer protection. and 5. Strategy.  

Why does talking about money and debt matter?

One of the key focuses of Talk Money Week 2021 is to encourage conversations about unaffordable debt. By having a conversation, you can improve your physical, mental and financial wellbeing. Money and Pensions research shows that talking about money can help you to:
  • Make better and less risky financial decisions
  • Have stronger personal relationships
  • Help your children form good lifetime money habits
  • Feel less stressed or anxious and more in control.
Building money conversations into our everyday lives also helps us build financial confidence and resilience to face whatever the future throws at us. However, it isn’t easy talking about money and debt. Many people fear being judged, or embarrassed or ashamed of their debt when the truth is problem debt can happen to anyone. Previous research from Christians Against Poverty Scotland also show that as many as 25% of Scots wait 3 years before seeking debt help.

What do people who have previously started a conversation with Trust Deed Scotland say about their experience?

At Trust Deed Scotland® we currently have over [reviews] reviews from our customers, with a rating of 5/5 rating on Trustpilot. When broken down, from the total number of 4,556 reviews received, 4,452 people rated us excellent. A further 95 people rated our service as good.
  • 97.7% said our service was excellent.
  • 99.8% said our service was excellent/good.
Our Trust Deed Scotland reviews are important to us, not only as a signal that our customers are happy with the service that they have received from us but also because they allow for people with problem debt in Scotland to find other individuals who were once in the same position that they too find themselves in. Some of those reviews are anonymised by our customers to protect their own identities. Many of the reviews go into great detail, and some contain just a few words. Either way, it’s always completely our customers’ own words describing their experience in their reviews and we’re always grateful to receive them; both good and bad. We’re always keen to action any feedback we receive to make improvements to our processes wherever we can and continuously improve our own learning and development as a leading Scottish debt solutions provider. Our experienced debt adviser Sharon received a review in the run-up to Talk Money Week 2021 which perfectly described many of the feelings that individuals have when they’re looking for help with their unaffordable debt and we appreciate the courage that it takes each and every one of our customers to leave a review.
Our customer wrote: “Getting into financial despair, was a long and winding road. Sometimes I was able to make some headway towards reducing my debts, but in the end, the robbing ‘Peter to pay Paul’ finally caught up with me and I found myself unable to afford basics. At this point, however, I must stress, my accrued debt was not money that I spent on fancy clothes, holidays or recreational, it was an accumulation of factors; being in a controlling, manipulative and selfish relationship; keeping my family afloat, lending money when they had none and giving to them when I had none. I felt I could not let anyone down and to keep kept face, I would do my own creative accounting and weather all of their storms, trying to be all of the strengths a perfect parent, albeit a single parent, could be. Then I hit rock bottom – every letter through the door was dreaded. Calls to my mobile were screened, calls started to arrive at my work. I started hiding from it all. Then, I had a health scare and I thought…great, I have a way out! The health scare came and went…As I said, I had robbed ‘Peter to pay Paul’ and because of this, nobody realised that I actually was crippled in debt. But then, there was no ‘Peter’. I could not get credit and this meant that I could not lend anybody money, pay off any of the ‘smaller’ debts or even afford basic day to day living costs. I found myself selling my own belongings and making it look like I was having a therapeutic clear out, just to save face again. I am not sure exactly when my ultimate rock bottom hit… probably when I sold something which was sentimentally valuable to me. I realised that my family had not asked me for money for a while and that I had not seen them for months. I realised that I was working a full time job with a good remuneration package but just days after payday, I had nothing left. I was an accredited and respected employee of a company that delivers an excellent service of care. I felt a fraud and I hated myself for what I had become. The despair, desolation and loneliness began to affect everything. I stopped being in contact with all my friends and family, scared that someone would find out and I couldn’t hide the fact that I could not afford to do anything social. Lockdown was a blessed relief for me. Even now, the only person that knows about my ‘mess’ is the person I made contact with the day I picked up the phone to Trust Deed Scotland. Calling the Trust Deed Scotland telephone number was not easy. I attempted it many times before building up the courage to stay on the phone. It has not been an easy task, but this is not a reflection of their exceptional service. It has been devastating to have my debts laid out in front of me. I had buried it and my head, so the accumulated amount was such a shock…truly soul-wrenching and I have never felt like such a failure in all my life. My advisor literally was a lifesaver. Without prejudice, she guided me through collating the information needed. She took me through the process, step by step, at a pace where I could take in all of the information without being overloaded, whilst all of the time making sure that I was ok. She gave me options and guidance; however, the ultimate decision to enter into the agreement I did, was my own. She gave me back the reigns of my own financial control. I still have a way to go yet. I am waiting to hear if all my paperwork will be accepted. All being well, in 4 years I will be debt free. I still have not told anyone close to me about my situation, but this is because I feel ashamed and this loneliness is my cross to bear. However, there is a light at the end of this very dark and long tunnel and I now have a torch to help. I will emerge a stronger and more financially independent person, all thanks to having the courage to make that call to Trust Deed Scotland.”

Start a conversation about your unaffordable debt

Our experienced, friendly debt advisers offer tailored debt advice and explain the advantages and disadvantages of any formal debt solutions that you may be eligible for. You can contact Trust Deed Scotland® on 0141 221 0999 or use our Trust Deed Debt Calculator to find out more about your options.
Talk Money Week 2020 Talk Money Week 2021 Talk Money Week 2022 Talk Money Week 2023 Talk Money Week 2024

Cost Of Living Scotland: Childcare Costs

Posted on by Craig Stocks
As we head into the October half term holidays across much of Scotland next week, new data has emerged showing the true extent of the cost of childcare in Scotland. The Prince’s Responsible Business Network highlights that as much as 51% of a parent’s salary is spent on a full-time nursery placement where they have children under the age of two. This equates to more than half the pay of an average adult in Scotland based on the median weekly take-home pay of a working-age adult in Scotland being £418p/w. Additional research published by workingmums.co.uk, a job board for professional women in the UK shows that:
  • 58% of mums were looking to change jobs, increase their hours or do an additional job
  • 51% of mums said the cost of living was affecting their childcare decisions
  • 49% said lack of childcare was stopping them working more hours
  • 49% had not had a pay rise in line with inflation
  • 10% have £20,000 or more worth of debt
  • Alarmingly, 7% are relying on food banks to feed their family
Whether in a relationship or a single parent, the ability of mums to earn more money for themselves will always be limited by access to childcare and the support network around them. Quite simply, increasing hours isn’t possible without childcare support. Families with children in all age groups are feeling the impact of the cost of living crisis in Scotland. As reported by STV earlier this year, many children from low-income families have returned their lunch money to their parents in order to pay for household bills. A further £1m is owed by pupils in the final years of primary school as parents struggle with the cost of living with local authorities using sheriff officers to reclaim the sums owed from their parents.

One in five adults is behind on at least one household bill

Research by the debt charity Money Advice Trust found that 45% of families with children were reported to be in debt. However, problem debt can happen to anyone with many people with different circumstances affected too. 21% of UK adults are estimated to be behind on at least one household bill, with as many as 14% having sold their personal belongings just to get by. The same survey data highlighted that 29% of UK adults are using their credit cards to pay for essentials whilst 10% are borrowing from friends and family. Whether a person borrows from a credit card lender, or from a friend, a family member or a work colleague the likelihood is that the debt will continue to escalate until it becomes unaffordable.

Help with unaffordable debt in Scotland

The cost of living crisis in Scotland continues to impact the lives of many people as it has done for some while now. In a survey of existing Trust Deed Scotland customers in February 2022, 21.62% reported that the cost of living was the event that triggered them to seek help. Typically divorce and separation, poor money management and ill health may be among the most common reasons that people seek help with their debts. Undoubtedly, if the same survey questions were asked of our latest customers who sought help from us between March 2022 to October 2022 this percentage will be significantly higher. An ONS survey from April to May 2022 found that 77% reported feeling very, or somewhat worried about the rising costs of living, 90% of parents with a dependent child aged 0-4 years said they were somewhat worried about the rising cost of living. 80% of parents with a dependent child aged 5 years and above said they were very/somewhat worried about the rising cost of living. With energy bills set to increase this month, you may be worried about how you’ll be able to pay for your other household bills like childcare, food, rent or mortgage and things like clothing. In the same survey of our customers earlier this year, respondents were asked how long they waited before they asked for help with their debts. Whilst 17.61% got help straight away and a further 24.98% got help within a year, unfortunately, many people with unaffordable debt in Scotland waited longer. 29.33% waited 1-2 years, 14.25% waited 3-4 years and 13.82% waited over 4 years. The biggest reason why people put off seeking help with their debt sooner than they did was that they felt ashamed or embarrassed about their debt. 31.89% responded with this answer. Trust Deed Scotland® provide tailored debt advice on all available debt solutions in Scotland. We know that asking for help is a big deal and we always urge that people read our Trustpilot reviews firstly as the [reviews] reviews from customers written in their own words can help empower you to seek help if you need it and to understand that you are not alone and that others are in the same position as you. We firmly believe that reading our customer reviews is the best way for people to understand who we are, what we do and why we can be trusted more than anyone else. Indeed, we’ve got more 5 star Trustpilot reviews than all other Trust Deed providers combined. Our experienced debt advisers make sure that our clients get personalised debt advice based on their affordability, lifestyle and needs. ☑️ Unaffordable debt written off ☑️ Reduced monthly payments ☑️ Interest and charges frozen ☑️ Home and car protected ☑️ Creditor contact reduced To find out more about the Advantages & Disadvantages of all formal debt solutions in Scotland, get started now by trying our Trust Deed Wizard® tool, or by calling us on 0141 221 0999.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free advice also available from moneyhelper.org.uk.

Talk Money Week 2022

Posted on by Craig Stocks
7-11 November 2022 marks a week known as Talk Money Week in the UK. It’s an annual event run by Money and Pensions Service and it usually falls on the second week of November of any year. It’s a time for debt charities and companies such as Trust Deed Scotland® to come together and encourage people to open up about their money and debt worries. Talk Money Week’s focus for 2022 is around credit, something that many people are currently resorting to use to pay household bills. A recent Ipsos survey carried on behalf of Sky News found that 25% of its respondents said they have already used credit cards for essentials or skipped meals in response to the cost of living. The same survey highlighted that 90% are worried about cost of living for the country as a whole while around 8 in 10 are concerned for themselves and people in the area they live. An additional 33% are finding it difficult to pay their energy bills and a similar proportion of mortgage holders and renters report rises in their housing payments. The Money and Pensions Service are funded by levies on both the financial services industry and pension schemes and their vision is “Everyone making the most of their money and pensions.” They are an ‘arm’s-length body’ sponsored by the Department for Work and Pensions, with a joint commitment to ensuring that people throughout the UK have guidance and access to the information they need to make effective financial decisions over their lifetime. They deliver those across five core functions. 1. Pension guidance. 2. Debt advice. 3. Money guidance. 4. Consumer protection. and 5. Strategy.  

Why does talking about money and debt matter?

One of the key focuses of Talk Money Week 2022 is to encourage conversations about unaffordable debt. By having a conversation, you can improve your physical, mental and financial wellbeing. Money and Pensions research shows that talking about money can help you to:
  • Make better and less risky financial decisions
  • Have stronger personal relationships
  • Help your children form good lifetime money habits
  • Feel less stressed or anxious and more in control.
Building money conversations into our everyday lives also helps us build financial confidence and resilience to face whatever the future throws at us and Talk Money Week’s intention is for you to kickstart a conversation in any walk of life, including:
  • In your workplace
  • At home with friends and family
  • In educational establishments, or with debt charities
  • With the people to who you owe money to
However, it isn’t easy talking about money and debt. Many people fear being judged, embarrassed or ashamed of their debt when the truth is problem debt can happen to anyone.

How long do people wait before getting help with their debt?

In a 2022 study of existing Trust Deed Scotland® & Harper McDermott customers.
  • 17% got help with their unaffordable debt straight away
  • 25% waited up to 1 year before asking for help
  • 30% waited between 1-2 years before asking for help
  • 14% waited between 3-4 years before asking for help
  • 14% waited over 4 years before asking for help with debt
57.4% waited over a year before finally asking for help with their unaffordable debt.

What type of debts worried our customers most?

Credit card debts are the most troublesome type of debt that our customers encounter.
  • 33.84% were worried about credit card debts in Scotland
  • 24.33% were concerned about a personal loan
  • 11.60% thought that their overdraft was a worrying debt
  • 7.20% were worried about council tax arrears debt
  • 6.68% are worried about payday loan debt
  • 4.04% are worried about a buy now pay later agreement
  • 3.31% were worried about their gas & electric bills*
  • 2.98% were worried about rent arrears debt
  • 2.95% were worried about HMRC debts
  • Lastly, 3.07% were worried about another type of unaffordable debt
*It’s important to stress that these answers were taken before the cost of living crisis really started to bite. If this same survey were to take place today, the results would be vastly different. For example, a survey from Smart Energy GB in October 2022 found that almost half of its respondents said they were worried about rising energy costs.

What impact did debt have on our customers’ mental health?

We asked our customers if their mental or physical health was impacted by their debt problem and overall 91.36% of our respondents’ mental health was impacted by their debt problem.
  • 57.61% – Yes – My mental health was affected
  • 1.33% – Yes – My physical health was affected
  • 33.75% – Yes – Both my mental and physical health were affected
  • 7.30% – No – My mental or physical health was not impacted by my debt problem
In the same survey, 84% of existing Trust Deed Scotland® & Harper McDermott customers said that their mental health had improved, with 30.39% of our customers also saying that their physical health improved also.

What do people who have previously started a conversation with Trust Deed Scotland® say about their experience?

At Trust Deed Scotland® we currently have over [reviews] reviews from our customers, with a rating of 5/5 rating on Trustpilot. In addition to this statistic, our survey shows that: 97.7% of our customers said they were satisfied or better with the Debt Arrangement Scheme as their chosen debt solution. 98.8% of our customers said they were satisfied or better with a Trust Deed as their chosen debt solution. Our survey asked all active customers for their feedback and also those who had recently been discharged from a debt solution. Our Trust Deed Scotland reviews are just as important to us, not only as a signal that our customers are happy with the service that they have received from us but also because they allow people with problem debt in Scotland to find other individuals who were once in the same position that they too find themselves in Some of those reviews are anonymised by our customers to protect their own identities. Many of the reviews go into great detail, and some contain just a few words. Either way, they are always written completely in our customers’ own words describing their experience in their reviews and we’re always grateful to receive them; both good and bad. We’re always keen to take action on any feedback that we receive to make improvements to our processes wherever we can and continuously improve our own learning and development as a leading Scottish debt solutions provider. Our experienced debt advisers received reviews in the run-up to Talk Money Week 2022 which perfectly described many of the feelings that individuals have when they’re looking for help with their unaffordable debt.
Reviewing one of our experienced debt advisers Sharon, Sheila wrote: “Thank you to Sharon this process was a lot less painful for me. She put me totally at ease with my situation, was helpful, explained things well, was kind, friendly, and had a bit of humour. I felt like I was talking to a friend rather than a debt advisor. The whole experience took only 24hrs after struggling for the last 6 months to find the courage to call.”
Shaun, speaking about his experience with our debt adviser Michael, said “Great experience from start to finish. I had been trying to avoid a trust deed for a long time. Micheal, who I initially spoke with, was brilliant and made me feel at ease right away. He was very understanding and reassuring. The fact you only speak with the same person throughout the whole process is great. I felt I could contact Micheal at any point for advice, always available or would respond ASAP. Obviously, a highly experienced company that are calming during what can be an uneasy time.”
Another customer wrote about the beginning of her debt journey with Valerie by saying: “After burying my head in the sand with stress and worry for over a year, due to being laid off through covid and a looming court case, I just gave up on all debt and direct debits! But after getting back to work and the court case not having as bad an effect as first feared it would. There was still the weight and pressure of thinking I had messed up my life, by not paying debts and thinking I’d never get back on my feet, Then I heard of Trust Dead Scotland, and there was a lovely lady called Val that took on my case and from start to finish she was an absolute star, making me feel at ease with a solution that best suited. To even finding out who I owed the money to, as I had no idea what each creditor was due and what for. I really just had given up before and so had no clue, but after getting in touch with Trust Dead Scotland and Val, I can finally look to the future and il be back on my feet in no time.”

Start a conversation about your unaffordable debt

Our experienced, friendly debt advisers offer tailored debt advice and explain the advantages and disadvantages of any formal debt solutions that you may be eligible for. You can contact Trust Deed Scotland® on 0141 221 0999 or use our online form to find out more about your options. Talk Money Week 2020 Talk Money Week 2021 Talk Money Week 2022 Talk Money Week 2023 Talk Money Week 2024

Debt Awareness Week 2021

Posted on by Craig Stocks
Debt Awareness Week 2021 in the UK takes place between 22-28 March this year. Spearheaded by Stepchange debt charity and championed by other prominent debt charities including the National Debtline, and supported by leading Scottish debt advice companies such as Trust Deed Scotland, the annual Debt Awareness Week event serves as an opportunity for a coordinated push by all debt advisory services to work together and help people struggling with unaffordable debt. StepChange is a registered UK Charity with a head office in Leeds, Yorkshire and is funded mostly by voluntary donations from creditors, and works with over 900 partner organisations. The theme of Debt Awareness Week 2021 is all about destigmatising debt. It’s about empowering people to feel confident about asking for the help they need and easing any worries they may have about being judged or feeling ashamed or embarrassed. For many households across Scotland, unaffordable debt is an everyday unavoidable fact of life but asking for help can feel daunting, something which Trust Deed Scotland understands well. Every week, Trust Deed Scotland receives new reviews from customers who in their own words tell us that they find our experienced debt advice team to be friendly and non-judgemental and that once they’ve spoken to our advisors, that their fears of being judged, ashamed or embarrassed are lifted. A number of people say that once they do ask for help, they can then begin to sleep again at night, or that their mental health improves significantly. Recently 55% of young Scots said that they were losing sleep over debt and there are already many established links between debt and mental health. Many of the people that we speak to on a day-to-day basis say that they contacted us after a referral from a friend, family member or work colleague. This greatly pleases us because not only does it show that our customers are happy with the outcome of their advice they received and the formal debt solution put in place for them, but it shows that people are more willing to open up about their personal finances to those around them. Challenging the stigma around debt. And, as the country continues to recover from the Coronavirus pandemic, many more people are now having to deal with their debt as a consequence. The theme of Debt Awareness Week 2021 continues with the hashtag #TheFirstStep and we’ve included some recent reviews received by our customers who themselves have recently taken their own first steps in their own journey. Trust Deed Scotland recently helped set up a Protected Trust Deed for our customer Shelley, who left a review saying: “Excellent service from the start. It took me a long time to make that call about my debt. I was embarrassed and feared been judged but it was completely the opposite I was treated with respect Sharon was absolutely lovely, welcoming, and most of all understanding she helped me enormously and can not speak highly enough of her service. I would 100% recommend Trust Deed Scotland if your struggling with debt please make that call.” title underlines Gordon, another customer who has entered into a Protected Trust Deed said of his Trust Deed Scotland experience: “Vicky was immensely helpful and easy to talk to about the very delicate situation of my debt. All anxiety was lifted with such fast and helpful guidance. Will definitely refer anybody I know struggling with debt to this program. Thank you very much. It’s greatly appreciated.” title underlines Earlier in the month, Trust Deed Scotland set up a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS) for our customer Erin who said: “After stressing for too long over my debts and feeling really embarrassed to ask for help, Pamela from Trust deed Scotland was extremely helpful and I didn’t feel judged at all, I felt so comfortable talking with her on the phone and she made me feel so at ease with the procedure. I can now say I’m so glad I went to Trust Deed Scotland as a weight has been lifted off my shoulders!” title underlines Robert, a self-employed customer who Trust Deed Scotland helped with a Protected Trust Deed said: “This difficult decision to address my debt problems was made significantly easier by the friendly and non-judgmental advice and help from all the staff especially my main advisor Joe at Trust Deed Scotland. Within the space of a month, I had been helped through what had always appeared as a terrifying financial minefield into which I hadn’t dared step, only for it to be revealed as a solvable problem. I can only urge anyone in my previous position to grasp the nettle and let Trust Deed Scotland help you.” title underlines Angela, a customer who Trust Deed Scotland helped with a Trust Deed proposal said: “I cannot thank Soreena enough for her patience and most importantly her complete understanding of my personal circumstances. The weight and total burden seemed to be lifted almost immediately after our initial conversation which was worth its weight in gold. With ease and comfort, the process was explained fully and my understanding checked at each step of the way. My needs and my individual concerns were paramount and taken into consideration with all decisions. Nothing at all, no question, no text nor no email was ever a problem for Soreena and I was treated with dignity and respect throughout. I now look forward to a sunnier future and leaving my troubles behind me.” Angela applied for a Trust Deed alongside her husband who made an application for a DPP as part of the Debt Arrangement Scheme showing that there really is no one-size-fits-all solution for our customers, with each customer’s individual circumstances, needs and affordability being the utmost priority at all times. title underlines With over [reviews] Trust Deed Scotland reviews you can read more reviews like these, written in our customers’ own words.

Take the first step on your journey to a brighter future today

  If you are struggling with unaffordable debt and you want to find out your options, you can contact Trust Deed Scotland today on 0141 221 0999. We offer tailored debt advice. We do not judge and we’ll treat any information that you share with us confidentially so, you don’t even need to commit to taking the first step today.

20% worried about Post-Pandemic Finances

Posted on by Craig Stocks
New research published by Money Advice Trust in conjunction with YouGov* finds that 20% of the UK population, an estimated 10.2m people, worry that their post-pandemic finances will not recover from the impact of the Coronavirus pandemic. The research highlighted that a further estimated 6.2m UK adults have used credit to pay for essentials such as utility bills, food shopping and paying their council tax. Worryingly, 2.3m have taken out high-cost credit to meet basic costs, meaning that a higher number of people are likely to already be experiencing problem debt issues as a result of lending during the pandemic. 17% of UK adults have been losing sleep over their finances, rising sharply to 43% where the individual is unemployed. 25% said that their mental health has been affected. The issues of Debt and mental health have a long-established connection with one another, even before the start of lockdown restrictions. The number of people who ended up in financial difficulties changed from an estimated 14% in May 2020, to 20% in December 2020 showing a significant increase in a short period of time. Redundancy and furlough were widely cited as the most significant reason, with an income shock such as reduced hours also being reported as a significant contribution to the cause of financial difficulties. Money Advice Trust is a UK charity advice service that provides data to inform a wide range of organisations, such as the Bank of England, on what the latest trends in the debt and credit sectors are. Their research programme also provides useful stats on debt and credit. Recognisable as National Debtline and Business Debtline which together help thousands of people in the UK every year with unaffordable personal debts and small business debts. The findings are part of a new report ‘The Cost of Covid‘ which outlines the experiences of people whose finances have been most impacted by the Coronavirus pandemic.

Post-Pandemic Finances – Payment Breaks Support

The Financial Conduct Authority (FCA) has said that borrowers facing difficulties will continue to receive ‘fair and appropriate support’ after a deadline to apply for a Coronavirus related payment holiday ends on March 31 2021. However, the FCA also said that they will be monitoring ‘tailored support’ with some lenders’ showing teething problems in implementing tailored support due to what it describes as ‘staff lacking experience’. Further FCA Guidance into Tailored Support was released in January 2021.

Post-Pandemic Finances – Impact on the Self Employed

The Cost of Covid report highlights the problems affecting self-employed people in the UK also. More specifically, not everyone has been eligible for the payments, which excluded owner/directors of limited companies, those who did not make the majority of their from self-employment, those with trading profits over £50,000 and until the March budget – newly self-employed people. Money Advice Trust quotes the UK government’s own figures that show in November, approximately 1.6m self-employed individuals had been excluded due to the eligibility criteria. However, they were keen to stress that some of these people will now be eligible due to the changes in the March 2021 budget.

Help with problem debt in Scotland

Earlier this year, the Money Charity also published a report highlighting that a Post-Pandemic financial recovery plan will be required and sitting alongside the Scottish Government’s lifting of lockdown restrictions, and return to normality, Trust Deed Scotland look to offer those with unaffordable debts with a road map to a brighter future. Getting your finances back on track is a journey, no matter what stage you’re at with your debts, there is help available for you. A recent theme around the recent Debt Awareness Week event sought to address the fears and concerns that a person with problem debt in Scotland may be experiencing. One of the main focuses was to empower those in such a position to seek help and overcome those fears. For example, many people with unaffordable debt put off asking for help through fear of being judged, or that they feel embarrassed or ashamed about their situation. It’s important to understand that if you are feeling this way, that you know that you’re not alone. Having helped over [volume] people in Scotland, and with over [reviews] Trustpilot reviews, we can confidentially say that our experienced debt advisors are friendly, non-judgemental and that any information that you choose to share with us will be treated with the strictest confidence. Whether you just need some advice or you are choosing to commit to a formal debt solution, we’ll be with you every step of the way of your journey with us. Our commitment to the quality of service we provide remains our top priority throughout, from the start of your journey to the end. Everything we do is in-house – From initial advice, setup, customer service and managing your debt solution until you are finished your journey with us. You will never be passed to another company, or be outsourced abroad to a call centre once your solution is in place. Earlier this year, we released information on a road map to a brighter future. If you’d like to take the first step today, call us on 0141 221 0999 or contact Trust Deed Scotland.
*The Money Advice Trust commissioned YouGov to conduct a national, online poll to examine the impact of the Covid-19 pandemic on household finances. Total sample size was 2,023 adults. The fieldwork was undertaken between 9-10 March 2021. The figures have been weighted and are representative of all GB adults (aged 18+). Where we extrapolate national figures from this data, these are calculated by the Money Advice Trust using population estimates from the Office of National Statistics which indicate that there are 51,220,471 adults in Great Britain.

30% Worried About Post-Lockdown Socialising Cost In Scotland

Posted on by Craig Stocks
Research has shown that 30% of people in Scotland may be concerned about the cost of post-lockdown socialising reports Yourmoney.com. The research was carried out by KIS Finance, and was based on a survey of over 2,000 people. The data highlighted that:
    • 30.2% of Scottish residents are concerned by pressure from friends and family to go out and make the most of being out of lockdown when they can’t afford it.
 
    • 52.8% of those aged 18-24 are fearing post-lockdown social pressures, after being one of the groups most affected financially by the Coronavirus pandemic.
 
    • 34.6% of people in Scotland are worried about losing their jobs in the coming months. This is attributed to either their workplace not surviving after lockdown or being made redundant when the Job Retention Scheme (Furlough) ends in September.
 
    • 14.1% of people are concerned about having to live off of a lower income than before the Coronavirus pandemic.
 
    • 11.2% of people are concerned about their payment holidays ending in July. The deadline to apply for new payment breaks may have passed, but lenders are still obliged to offer ‘Tailored Support’ to people who are struggling as a result of the Coronavirus pandemic.
    Speaking to Yourmoney.com, Holly Andrews, managing director of KIS Finance, a financial brokerage based in Wales said of their research findings: “Living under constant restrictions has been difficult for almost everyone at some point over the last year and a lot of us are desperate to see family and friends, as well as go on holiday and make up for what we’ve missed. However, it’s important to remember that not everyone will be able to keep up and be able to afford the same level of socialising as before the pandemic. Young adults have been particularly affected by reduced incomes and the need for increased borrowing, and they’re also the age group feeling the greatest pressure to make the most of life after lockdown. As much as you may want to go out and socialise, it’s important not to let yourself get into any further debt to fund holidays and days out. Now’s the time to create a budget and work out a debt repayment and spending plan for the coming months.”

    Help with unaffordable debts in Scotland

    As the country begins to recover, the imminent re-opening of non-essential retail, restaurants, gyms, cafes and pubs will provide a valuable boost to the livelihoods of business owners and employees who are directly impacted by their closures. The gradual easing back into a new normal life should help the mental health and wellbeing of everyone else. However, many household’s finances have been badly affected by the Coronavirus pandemic and Trust Deed Scotland have been actively helping thousands of Scottish residents during this time. Our experienced debt advice team advise on the risks and benefits of all formal debt solutions available in Scotland and offer tailored debt advice, regulated by a UK regulatory body. A Protected Trust Deed is a legally binding arrangement in Scotland where you make reduced, affordable payments over a typical period of four years. At the end of this time, your unsecured debts are usually written off. The Debt Arrangement Scheme (DAS) is a formal debt management tool. DAS lets you apply for a Debt Payment Programme (DPP) which helps you repay your debts by making affordable monthly payments. Full Administration Sequestration Scotland (Bankruptcy) is a form of insolvency and may be suitable if you can’t pay back your debts in a reasonable time. Assets you own, such as your house or car, could be sold to pay off your debts. A Minimal Asset Process (MAP) Bankruptcy gives you a fresh start by writing off debts that you can’t repay within a reasonable time. It’s aimed at people with a low income and minimal assets and costs less and is more straightforward than Full Administration Sequestration. You can only apply for MAP through an approved money advice organisation. Review our Scottish debt solutions guide for more information.

    Does a formal debt solution prevent spending money on socialising?

    The solutions that we can recommend and implement on our client’s behalf can allow for hobbies to be taken into account, alongside other essential expenditures. Perhaps you are struggling to repay your debt but are worried that choosing a statutory debt solution may leave you without enough money to enjoy post-pandemic socialising and recreational activities for you and your family. Thankfully, this is not the case and within reason, an allowance can be made for such activities. Having helped over 25,000 people in Scotland, and with over 3,000 Trustpilot reviews, we can proudly promise you that our experienced debt advisors are friendly, non-judgemental and that any information that you choose to share with us will be treated with the strictest confidence. Whether you just need some advice or you are choosing to commit to a formal debt solution, we’ll be with you every step of the way of your journey. Our commitment to the quality of service we provide remains our top priority throughout, from the start of your journey to the end. Everything we do is in-house – From initial advice, setup, customer service and managing your debt solution until you are finished your journey. You will never be passed to another company, or be outsourced abroad to a call centre once your solution is in place. If you’d like to take the first step today, call us on 0141 221 0999 or contact Trust Deed Scotland.  

Breathing Space & Statutory Moratoriums

Posted on by Craig Stocks
As the country continues to cope with the financial impact of the recent pandemic and with the rising cost of living impacting the lives of so many, a significant number of people now need to deal with the impact of problem debt all across the United Kingdom. A new ‘Breathing Space’ scheme has begun in England and Wales, aimed at helping people in problem debt from further interest and charges. Officially known as the Debt Respite Scheme, it freezes interests and charges for a period of 60 days, and halts debt collection to allow people more time to come up with a longer-term solution to their unaffordable debt. People in England & Wales can apply for the break, which lasts for up to 60 days, to prevent them from falling into a spiral of debt. The UK Treasury has estimated that up to 700,000 people could be helped by the scheme in its first year and hopes to follow up on the Debt Respite Scheme with a ‘Statutory Debt Repayment Plan in 2021, a solution that has long been spoken about, with similar characteristics to that of the Scottish Debt Arrangement Scheme (DAS) which has been in place since 2004, albeit with revisions over the years since its launch. People receiving treatment for mental health issues can get more help. The separate system for those receiving mental health crisis treatment lasts for the length of that treatment, plus another 30 days. People in Scotland with unaffordable debt in Scotland already have an equivalent to ‘Breathing Space’ known as a Statutory Moratorium, with a low and grow debt payment plan being another solution allowing those struggling with unmanageable debt as a result of a loss of income due to the pandemic, to make minimum or token payments through the Debt Arrangement Scheme (DAS) with a view to increasing them when their income returns to a normal level.

Statutory Moratorium Scotland

If you are worried that you may be at risk of Sheriff Officers taking action against you, a Statutory Moratorium (Scotland) is a legal instrument that you can use to protect yourself. Statutory Moratoriums also protect you from creditors making an application for you to be Sequestrated. The Statutory Moratorium gives you 6 weeks protection from a Sheriff Officer taking action against you, such as arresting your bank account or freezing your income. If you are worried a Sheriff Officer may freeze your bank accounts, or arrest your wages, then a Statutory Moratorium may be suitable for you. It can also stop possessions like cars, or any other valued asset item, being attached. The process is designed to allow breathing space for anyone struggling with their debts, so they can consider their options, regardless of whether those options are the Debt Arrangement Scheme, a Trust Deed or Bankruptcy (Sequestration). Essentially, a Statutory Moratorium can be used to buy you time, until the pandemic is over so that you can review your options at a later date when you have more information on your future ability to pay.  

What was the Low and Grow DAS?

The Debt Arrangement Scheme (DAS) is a formal debt solution in Scotland that has seen significant growth in the last year. Such has the growth in the use of the Debt Arrangement Scheme been in Scotland, that the number of people using the solution grew 18% in 2020 against 2019, according to official Scottish government statistics. Under existing affordability rules, the solution can only be put in place if an individual has the ability to be able to make regular repayments from their income. However, from early 2021, it was made possible for those struggling with unmanageable debt as a result of a loss of income due to the pandemic, to make minimum or token payments through DAS with a view to increasing them when their income returns to a normal level. Low and Grow Debt Payment Plans, or Low and Grow DAS as they were also referred to, were a tool rolled out to help people with unaffordable debts in Scotland during Covid times. For many Scottish residents, this helps to provide vital breathing space and a welcome opportunity to take control of household finances. UK government figures show that after the first lockdown, over 700,000 Scots had been furloughed under the UK job retention scheme, with many households struggling with debt, the newly created Low and Grow debt payment plan should give welcome relief to those who are in a position to repay their debt over a longer period of time but require a short term solution in the intermediate period before their regular income returns to normal. When a person repays their debts through DAS, interest and contractual charges are frozen. DAS lifts wage arrestments; stops court action including Sequestration (bankruptcy in Scotland) and requires one monthly payment that is distributed to all creditors on their behalf. You can find out more the advantages and disadvantages of the Debt Arrangement Scheme and alternative formal solutions such as Trust Deeds by calling Trust Deed Scotland on 0141 221 0999. Jamie Hepburn, Minister for Business, Fair Work and Skills said: “I am acutely aware of the impact that the pandemic and necessary restrictions are having on household finances. In this uncertain time, I would encourage anyone experiencing problems with debt to seek advice as soon as they can. “DAS is an enormously valuable tool to help manage problem debt and the Scottish Government has worked closely with the advice sector and other stakeholders to introduce greater flexibility in the operation of the scheme to assist those impacted by the pandemic.” Trust Deed Scotland® said: “Getting early, tailored debt advice remains crucial as the country continues to cope with the pandemic. Every day we speak to people who are feeling overwhelmed by the challenges of lockdown, homeschooling, poor mental health, caring for elderly relatives, reduced income and many are feeling overwhelmed with their debt. Many of those individuals have had a sudden change in their circumstances and are prevented from repaying their debts due to a short term inability to make repayments. That short term problem can sometimes lead to a situation where the person can never catch up and a debt solution is required. We welcome the newly created Low and Grow debt payment plan and urge people struggling with problem debt to seek debt help now.”

Debt Arrangement Scheme vs. Minimal Asset Process

Minimal Asset Process (MAP) is a route into Sequestration (bankruptcy) aimed at individuals who have no, or little assets and who also have little, or no income. DAS is not insolvency, it is the only statutory debt management plan in the UK. In order to find out which option suits an individual better, it is essential to seek advice before making a decision. Both solutions, in addition to Trust Deeds, are effective ways of formally dealing with unaffordable debts. While it’s true that many people currently furloughed, or claiming Universal Credit may loosely qualify for both, a clear understanding of your personal circumstances, assets, future ability to repay debts, and/or desire to rebuild a credit rating need to be correctly assessed. Bankruptcy has always carried the greatest stigma and many people that we’ve spoken to over the years have struggled on for years to avoid being made bankrupt but the reality is that in the right situation, the Minimal Asset Process route and Full Administration Sequestration are effective tools that have helped thousands of people rebuild their lives through the years.

Tailored Support

Tailored Support effectively replaced payment breaks, which are now closed to new applications and are scheduled to end by 31 July 2021 for those already using them. Compared to the previous payment breaks, Tailored Support is more ambiguous in its definition, it’s down to your lender to advise on what they can offer you including a (further) payment deferral a (further) period of reduced payments, waiving or reducing interest, agreeing on a repayment plan and/or refinancing your credit agreement.

Advice on your options

To find out more about managing your money and getting free advice, visit Money Advice Service, an independent service set up to help people manage their money. Trust Deed Scotland® can give you advice on Low and Grow DAS but also advice on applying for a Statutory Moratorium and our experienced team, offer debt advice that is…
  • Non-Judgemental – Our friendly, helpful team want to help find a solution that suits your needs.
  • Confidential – We do not share your details with any other companies. Your data is safe and secure.
  • Experienced – [volume] people helped and over [reviews] five-star reviews on Trustpilot.
  • Tailored – Pros and cons of all formal solutions explained.

Apply for a DAS

You can find out more about applying for a low and grow DAS by using our Trust Deed Wizard tool or by calling us on 0141 221 0999. Our experienced debt advisors provide tailored debt advice outlining the risks and benefits of the Debt Arrangement Scheme and other formal Scottish debt solutions including Protected Trust Deeds and Sequestration.

25% Of Scots Wait 3 Years Before Seeking Debt Help

Posted on by Craig Stocks
Christians Against Poverty Scotland have released a new report that shows that 25% of the people that they helped in Scotland waited between one and two years before seeking help with their debts, and a further 25% waited three years or more before seeking help. Worryingly, 45% said that they did not know where to get help. CAP Scotland is a national charity that works with 715 affiliate churches, looking to help the vulnerable people out of poverty, UK-wide.
  • 12% Didn’t wait to seek help.
  • 27% Waited less than one year.
  • 25% Waited 1-2 years.
  • 25% Waited 3 years or more.
  • 11% Unknown
A rise in non-priority debt e.g. credit cards, personal loans and catalogue debts, saw the average debt level in Scotland increase to £17,917, of which £12,065 was identified as being non-priority debt. On average, CAP Scotland clients have 9 non-priority debts and the most common types of non-priority debts their clients reported were personal loan (69%), credit card debts (63%), mobile phone debt (46%), overdraft debt (38%) and catalogue debt (34%). In terms of priority debts, council tax arrears (40%), rent arrears (10%), energy arrears (9%) and mortgage arrears were the common types of debt that their clients sought help for. Low income, mental ill-health, relationship breakdown, long-term illness and unemployment were identified as the most common reasons that caused a debt crisis for their clients. 71% said that debt impacted their relationship, with 19% citing debt stress as the reason for a relationship breakdown. 44% are unable to afford adequate clothing 37% sacrificed meals 37% went without heating 31% are unable to afford basic toiletries 28% said they had considered or attempted suicide as a way out of debt. 20% were unable to afford to light their home. Speaking on the finding of the CAP Scotland report, Gareth McNab, Director of External Affairs said: “The full effects of the global pandemic will not be felt for some time; we know that one in four (25%) CAP clients wait over three years before seeking debt help. The debt advice industry is anticipating rising numbers in need of debt advice. More must be done to reach and help households struggling. Joined-up working is needed more than ever, forming partnerships to combat the financial fallout of the pandemic. Yet we cannot forget that even before COVID-19, households were struggling and, without change, people will still struggle in the future. Unless we do something about it” You can read the CAP Scotland 2021 client report.
As a leading Scottish debt advice company, having helped thousands of people with their unaffordable debt, Trust Deed Scotland® have received over [reviews] reviews on Trustpilot where many people tell us things like “I wish I got help sooner” or “I can sleep again at night, now that my debt is under control again.” The fear of being judged, or feeling ashamed or embarrassed about having debts are often spoken about by our clients in regards to reasons why they put off seeking debt help. In April 2021, Lauren said: “After being hesitant for a while to contact Trust Deed Scotland, I am so glad I did, as Pamela was so friendly, understanding and non-judgemental during the process. I would 100% recommend anyone struggling with financial difficulties to get in touch. I wish I had sooner.” Also speaking in April 2021, Louise said: “Called Trust Deed Scotland eventually after months of worrying about mounting debt and just wish I’d have done it sooner. Soreena dealt with my case and couldn’t have asked for anyone better than her. She listened and totally understood everything I said and never judged me at all. I can now look forward to receiving my wages every month, knowing that everything is going to be paid in one payment and might even have some left now.” Earlier in the year, in January 2021, Jamie said: “I couldn’t have been made to feel more comfortable, I was always quite ashamed to talk about my debt. Vicky made me feel completely at ease and made the whole process seem so simple.”

Help with unaffordable debt in Scotland

If you live in Scotland and you are struggling with your finances, you can find out more about your options by calling Trust Deed Scotland® on 0141 221 0999. Alternatively, you can also download our Scottish debt solutions guide. Our experienced team can give you confidential advice, that with help you understand the pros and cons of all formal debt solutions in Scotland such as Trust Deeds, the Debt Arrangement Scheme and other Scottish Debt Solutions. Once we know more about your situation, we are then able to give you tailored debt advice that fits your individual requirements.

Can I Arrange My Own Trust Deed?

Posted on by Craig Stocks
No. All Trust Deeds must be arranged and administered by an Insolvency Practitioner. Insolvency Practitioners are highly qualified professionals with an extensive knowledge of insolvency laws and have undertaken a series of exams to become licensed to practice their services. In the context of a Trust Deed, the Insolvency Practitioner will have specific knowledge of insolvency laws in Scotland and performs the role of a Trustee. The Trustee aims to pay your creditors as much as possible of the debt owed to them. This normally involves you making an affordable contribution from your income and may involve some of your assets or property being sold so that the money raised can be paid to your creditors. As part of the supervision process, your Trustee will perform a number of duties including:
  • Ensuring your payments are collected from you on time.
  • Undertaking annual reviews of your finances. Making any adjustments needed to keep it on course. Your annual salary may increase or decrease or there may be bonuses or commissions to be considered.
  • Undertaking an assessment of your assets and arranging the valuation and sale of them if needed – it is common for you to be able to keep your assets but you may need to pay additional sums from your income in lieu of their value.
  • Protecting you from legal action from your creditors and ensuring that creditor contact is reduced.
  • Paying your creditors as funds become available.
  • Finalising the administration and granting your discharge at the end of the Trust Deed period.

Trust Deeds – How do I apply?

The Protected Trust Deed is a legally binding agreement and can help you write off unaffordable debt, significantly reduce the amount that you repay each month and allow you to become debt free after a typical period of 48 months. Like all debt solutions, Trust Deeds have benefits and risks. Before you can commit to the Trust Deed as your chosen solution, you should first speak to an experienced money advisor to find out if you would qualify for a Trust Deed. All possible pros, cons and alternatives should be comprehensively explained to you at this stage. With Trust Deed Scotland®, there are no setup fees for a Trust Deed but if you were to proceed with a Trust Deed, the amount that you repay in fees would be explained to you before you signed. Ultimately, the purpose of a Trust Deed is to help you bring your finances back under control and allow you to free yourself from the burden of unaffordable debt. This will always be the most important aspect of any proposed solution. For balanced, transparent debt advice, you can contact Trust Deed Scotland today on 0141 221 0999. You can use our Trust Deed Wizard® tool to start the process of applying for a Trust Deed online now.

When might a Trust Deed be good for you?

A Trust Deed might be an option for you when you have:
  • Over £5,000 of unsecured debt
  • You have enough money to make a regular contribution towards your debt
  • You are unable to afford your current repayments
Trust Deed considerations
  • Your credit rating will be affected
  • A Trust Deed may not be an option with certain job types
  • If you are a homeowner and have equity in your home this may need to be realised to pay to your creditors
  • Creditors can vote against a Trust Deed becoming ‘Protected’
You can get a more in-depth analysis of the pros and cons of Trust Deeds by calling our team on 0141 221 0999.

What can I arrange for myself?

You can attempt to repay your debts using an informal debt solution such as a Debt Management Plan. With this solution, you will provide your creditors with a list of your income, expenditure and who else you owe money to. You’ll make pro-rata repayment offers and the creditors will decide whether to accept your offers or not. You can often ask a debt charity to help you with this on your behalf. It’s worth noting that if you do self-negotiate new repayment terms with your creditors, your credit rating can also be affected depending on the amount of the proposed repayment. This is due to you defaulting on the original agreement, where the payment amount is less than the contractual amount. Another solution that you can self-administer or ask a debt charity to help you with is a full and final settlement. This is where you have access to a larger sum of funds which can then be used to settle on a percentage of the original debt. In a Full and Final Settlement a creditor agrees:
  • To accept less than the whole amount to clear it (‘full’), and
  • that they won’t take action to recover the rest (‘final’).
This is more likely to an option further down the line when you’ve already defaulted on your original debt and you’ve been since been moved onto debt collection agencies. At Trust Deed Scotland®, we will always have your best interests at heart and therefore we always recommend chatting through your situation with an experienced debt advisor in order to find out what your options are.

Alternatives to a Trust Deed

The Debt Arrangement Scheme (DAS) is a popular alternative solution to the Protected Trust Deed and also requires a qualified money advisor to set up on your behalf.  Our Insolvency Practitioner at Trust Deed Scotland® can also act as your Money Adviser and help you complete an application for DAS. To apply for Bankruptcy, known as Sequestration in Scotland, you will need to seek advice from an Insolvency Practitioner or any qualified Money Adviser from a debt charity, a local CAB or a Money Adviser at your local authority.